Promoting public investment
According to economist Dr. Vo Tri Thanh, economic growth of over 8% in 2025 is a big challenge and to achieve it, clearing bottlenecks is an important premise. Because if done effectively, it will help improve confidence in Vietnam's business environment, thereby attracting domestic and international investment capital.
Mr. Thanh emphasized that one of the things that needs to be focused on is to boost public investment, especially the implementation of key projects. He analyzed that each 1% increase in public investment disbursement will contribute to increasing GDP growth by 0.058%. In addition, each VND of public investment disbursed can stimulate 1.61 VND of investment capital from the private sector, creating a strong spillover effect in the economy.
In 2024, the progress of public investment disbursement has not met the plan. As of the end of the first two months of 2025, the disbursement of public investment capital was VND 60,423.8 billion, reaching 7.32% of the plan assigned by the Prime Minister. This requires a very high determination to effectively use capital in 2025, completing the disbursement of at least 95% of the plan according to the Prime Minister's direction.
For Vietnam's economy to grow by 8%, many "bottlenecks" need to be cleared. (Illustration photo)
Experts also said that exports, investment, and consumption are the three pillars of economic growth. In 2025, the export situation will fall into a difficult situation due to the new and volatile tariff policy of US President Donald Trump, causing global purchasing power and global trade to decline.
This development also makes consumption dynamics unpredictable. Thus, the role of investment is very important, especially public investment, with many key projects to be implemented.
“ The rapid but appropriate implementation of infrastructure projects not only creates momentum for current growth but also ensures long-term development, bringing Vietnam closer to its goal of becoming a developed economy by 2045 ,” Mr. Thanh said, emphasizing that the Government needs to improve its capacity to monitor investment projects.
Meanwhile, Associate Professor Dr. Tran Hoang Ngan confidently said that this is not difficult, especially in the context of a very high level of unity, a great aspiration for a rich, prosperous and happy country, on par with the world powers, with the consensus of the entire nation of 100 million people and the enthusiastic response of the business community. However, to make the aspiration and goal come true, much work needs to be done.
Rapid but appropriate implementation of infrastructure projects will not only provide momentum for current growth but also ensure long-term development, bringing Vietnam closer to its goal of becoming a developed economy by 2045.
Dr. Vo Tri Thanh
He analyzed: According to the old target, in 2025, growth was 6.5 - 7% with total social investment capital of 171 billion USD, of which public investment was 33 billion USD. With the new target of 8% growth, total social investment capital is 174 billion USD, of which public investment is 36 billion USD. Thus, public investment growth is something that needs to be focused on this year.
However, Mr. Ngan emphasized that attention must be paid to the efficiency and quality of public investment, avoiding scattered, unfinished investment that causes waste.
In the current period, it is necessary to focus on taking advantage of public assets and public land to put them into use, exploit them or auction them to have capital for investment and development.
Institutional obstacles
Another bottleneck that many experts recommend is causing difficulties for business development and people's lives, which is institutional and legal problems.
Currently, the legal system and institutional system still have overlaps, so they have not opened up a wide and smooth development space for domestic entrepreneurs, enterprises and foreign investors. For example, problems in infrastructure construction and real estate have caused thousands of construction projects to be legally “stuck” and unable to be implemented. Or businesses also face many difficulties due to not meeting enough procedures to access credit capital.
Mr. Vo Tri Thanh commented: “ The growth story of 2025 needs to be seen as creating a solid foundation for Vietnam to develop sustainably, even dramatically in the following years. This requires institutions to be properly shaped along with many effective improvements.”
The growth story of 2025 should be seen as creating a solid foundation for Vietnam to develop sustainably, even dramatically, in the following years. (Illustration photo)
Sharing the same view, expert Bui Kien Thanh also affirmed that if Vietnam can remove institutional bottlenecks and have good policies, it will be easier to attract foreign investment, increase capital from major countries into Vietnam, thereby creating jobs and increasing income for workers.
“We must continue to research to create the most attractive investment environment for both domestic and foreign enterprises, only then can we create a sustainable cash flow to serve economic development,” said Mr. Thanh.
According to Mr. Tran Hoang Ngan, building trust with investors is extremely important and will be the key to achieving economic growth targets in a volatile context. Obstacles, barriers, overlaps, duplications... in legal documents or complicated and costly administrative procedures that hinder and block investment and business activities must be quickly removed.
In addition, it is a mechanism to attract high-quality human resources to adapt to the new era, the era of science and technology, innovation, digital transformation associated with the revolution of streamlining the apparatus, efficiency, effectiveness and efficiency.
We must continue to research to create the most attractive investment environment for both domestic and foreign enterprises, only then can we create a sustainable cash flow to serve economic development.
Expert Bui Kien Thanh
In addition, experts all agree that the State needs to focus on reducing taxes and fees to support businesses, especially private businesses. Mr. Vo Tri Thanh analyzed: Reducing taxes and fees is an effective solution to stimulate domestic consumption, which accounts for about 70% of GDP.
For example, the measure to extend the VAT reduction from 10% to 8% has supported consumption and increased purchasing power, especially in the context of the tourism industry recovering with 17.6 million international arrivals in 2024.
Mr. Phan Duc Hieu, Standing Member of the National Assembly's Economic Committee, suggested that the Government should develop a comprehensive solution to stimulate the economy. Because to increase GDP by 1%, countries will often have policy stimulus packages. These packages do not necessarily have to be officially named but can be a group of support policies to promote consumption, production-business and export.
" There is no better policy solution than tax, which means focusing on supporting businesses. One is to reform personal income tax to increase disposable income for people, thereby promoting consumption. The second is to review all tax policies for businesses. If it is not really necessary, we should not increase taxes ," Mr. Hieu said.
Along with that, Mr. Hieu said that it is necessary to quickly review and immediately amend regulations that increase costs for businesses, making investment capital ineffective. "Now, businesses need the most support in resolving administrative procedures, especially in terms of time, " Mr. Hieu emphasized and said that only when businesses grow strong can economic development goals be easily achieved.
"Reinforce" credit interest rates
According to Mr. Tran Hoang Ngan, what businesses fear most is high and unstable credit interest rates.
“In total social investment capital, investment from the private sector accounts for over 55%. Therefore, there must be a comprehensive solution package to mobilize capital and investment from the private sector such as reducing land rent, fees, taxes, credit guarantees, reasonably low credit interest rates, administrative reforms…”, Mr. Ngan stated his opinion.
According to Mr. Ngan, monetary policy needs to be flexible according to growth targets and inflation control, not allowing the bad debt tumor to return.
On average, more than 2% credit growth will help increase GDP growth by 1%. With GDP growth striving for over 8%, the credit growth target must be around 16%. Banks are expected to have a lot of room to push credit this year. Wholesale, retail, export, import and loans for living and consumption are forecast to be the three sectors with the highest credit growth drivers.
According to experts, to have growth, there must be investment, and to have investment, there must be capital to ensure development. And how to have enough capital to serve the growth of the economy, especially in the context that medium and long-term capital mobilization channels such as stocks and bonds still have problems that need to be strengthened, that will be a heavy responsibility for monetary and credit policies in 2025.
Therefore, it requires many synchronous solutions such as innovating the credit room mechanism so that banks can develop credit acceleration plans from the beginning of the year. Or there needs to be a long-term strategy to develop the capital market, creating additional funding channels to reduce dependence on banks. When the capital market expands, the imbalance in capital supply and demand will be improved, narrowing the gap between deposit and lending interest rates.
Dr. Bui Kien Thanh emphasized the development of an international financial center in Vietnam. According to him, the faster this is done, the more Vietnam's position will be affirmed and economic growth will be even faster.
“Currently, the world’s number 1 international financial center is New York (USA), number 2 is London (UK), number 3 is Shanghai (China), number 4 is Singapore. Vietnam is located between two major economic centers, Singapore and Shanghai, but there is still no financial center. If we focus on this goal to soon have a financial center, this will be a condition to promote economic development very quickly and sustainably ,” he said.
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